US EQUITY OPEN: Indices in the green underpinned by SPCX & SMCI as Mag-7 earnings await after-hours

OPEN: US indices opened in the green, with Communications the clear underperforming sector and weighed on by Netflix (-3%) post-earnings. Supporting the upside is a stellar SpaceX (+10.5%) report and SuperMicro (+11.1%) lifting guidance, which is seeing Industrials and Tech as the two top performing sectors. Earnings continue after-hours with the highlights being META and TSLA. There is no tier 1 US data on Wednesday, with the 20yr auction later in the session a risk event. The Dollar Index is more-or-less flat, with the Aussie and the Yen outperforming, with the former helped by hawkish comments from RBA's Hauser, while the EUR lags, albeit marginally, as the French 10yr yield hit 5% earlier in the session. Treasuries are firmer across the curve, precious metals are mixed with spot gold eking out strength, and silver lower. WTI and Brent are now lower, paring earlier strength in the European session, with some downside in benchmarks seen following the FT report; Araghchi said they are ready for diplomacy, but will defend themselves, and that the US has shown no willingness to reach an understanding and little reason to expect progress now. STOCK SPECIFICS: Super Micro Computer (SMCI): Sharply raised Q1 outlook on stronger AI platform demand & also lifted GM guidance. Netflix (NFLX): Guidance notably underwhelmed following slowest rev. growth in 3yrs SpaceX (SPCX): Sharp increase in AI rev. drove a swing to profit & saw stronger-than-exp. rev & Starlink growth United Airlines (UAL): EPS missed w/ dismal next Q guidance AT&T (T): Post-paid net additions missed Capital One (COF): EPS & rev. topped, NIM expanded & credit loss provisions declined Moody's (MCO): Headline metrics disappointed Philip Morris International (PM): FY bottom line guidance fell short Abbott Laboratories (ABT): Plans to separate its Nutrition Business & reduced 2026 sales growth forecast